Solar Power Costs
The total cost of a fully installed PV system depends on a number of factors. System size plays the largest role in determining costs, but equipment brand and ease of installation will also impact the bottom line. In general, a typical system of 5.8kW (which can offset up to $120 per month of your electric bill) will cost between $4.00 - $4.50 per watt. However, once you factor in the rebates and tax credits, the cost drops down to approximately $1.00 - $1.50 per watt. Although this is a significant investment, don’t let the “sticker shock” scare you away. Compared to paying electric bills for the next 30+ years, it is one of the best investments you can make (please visit our Solar Payback and Financials page for details).
Average Costs | |
| Total System Cost (parts and installation) | $23,526 |
| LIPA Rebate (covered by Horizon Solar) | - $10,080 |
| Customer's Gross Cost: | $13,446 |
| State Tax Credit (25% system costs, $5,000 max.) |
- $4,034 |
| Federal Tax Credit (30% system costs, no maximum) |
- $3,361 |
| Federal Tax Adjustment (Income tax bracket X State tax credit) |
+ $941 |
| Net Cost after rebate & tax credits: | $6,992 |
Average Production and Financial Benefits | |
| Annual Production | 6,651 kWh |
| Annual Savings | $1,397 |
| Payback Period (Break-Even Point)* | 4.6 years |
| Annual Rate of Return* | 30.1% |
| Direct Savings over Life of System* | $89,173 |
| Home Value Increase | $28,856 |
| *See Solar-Payback-and-Financials page for details | |
Note: the above cost and production estimates are for demonstration purposes only. Actual pricing will depend upon system design configeration, and production will vary based on site conditions.
Related Topics
Benefits of Solar Power | Solar Rebates and Incentives | How to Get Solar